Romania Press Review August 6, 2026

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Thursday, August 6, 2026

Business

Romania’s FinMin sees country’s rating rests on credible new government and budget

Romania’s Finance Minister and one of the potential prime minister candidates, Alexandru Nazare, said in an interview with Ziarul Financiar that besides successful completion of the Resilience Plan and the absorption of the related funds, the formation of a credible government able to maintain fiscal consolidation momentum under the 2027 budget plan is critical to maintaining the country’s investment-grade rating. The downgrade risk remains relevant, he admitted – linking the risk to the lack of visibility on the future steps of the government.
“I am optimistic that we will keep the rating, but there still exists a downgrade risk, and this risk is generated by the measures that must be adopted in the fall," declared Minister Nazare.
He indicated that maintaining the rating depends heavily on the appointment of a government with full powers, the fulfilment of the PNRR milestones by the end of August, and the approval of a sustainable budget for 2027, which would show the continuation of fiscal measures.
The downgrade would bring not only higher financing costs, which are already high, but currency depreciation and inflation, he explained.
"It is a false impression that the downgrade to Junk would not affect us because we borrow at very high interest rates anyway. We are not only expecting an increase of 50 or 100 basis points in interest rates, but also a depreciation of the exchange rate and an increase in inflation," Nazare said. The minister pointed out that indeed the level of interest paid on public debt has reached 3% of GDP, a very high level, but that, hopefully, by 2029-2030 we will have a stabilisation of public debt.
While Minister Nazare expressed confidence in the fiscal consolidation this year, to a deficit to 6%-6.2% of GDP, he expressed more scenarios regarding economic growth ranging from deep recession to still meeting the 0.1% GDP growth projection assumed for budget planning purposes.
So, in a scenario of improving the situation in Q3, significant reduction in contraction and with a positive Q4, there are chances at this moment that we will reach the base scenario forecasted at the adoption of the budget", said Nazare.
Otherwise, we will enter deeper into recession, but the minister is optimistic that we will record a positive evolution in consumption in the fourth quarter.

Source ZiarulFinanciar

ING sees clearer signs of macro rebalancing in Romania, but rating still at risk

ING Bank, under a research update, pictures a quite optimistic macroeconomic scenario with growth rebounding to 2.3% next year from a 0.5% contraction in 2026, fiscal consolidation in line with plans this year and “reasonable chances” of close to full Resilience Facility money absorption despite implementation risks. However, the bank’s analysts caution that the 2026 budget consolidation remains only a step in the right direction and consistent execution is still key.
The prolonged interim government situation adds uncertainty around policy continuity, reform implementation and Recovery and Resilience Facility (RRF) milestones, while rating downgrade risks remain important as growth, fiscal and political stability remain under close scrutiny, the research update reads.
Amid a benign short-term fiscal outlook and macro rebalancing gaining traction, ING warns political uncertainty remains an important caveat. The interim government has now been in place for around three months, which raises questions around policy continuity, reform ownership and the ability to deliver politically sensitive milestones on time.
This does not invalidate the recent fiscal improvement, but it does increase the premium on execution, especially as the final RRF deadlines approach and markets continue to assess the credibility of Romania’s consolidation path, the report reads. Rating downgrade risks remain important as growth, fiscal and political stability remain under close scrutiny.
Economic activity likely remained lacklustre in the second quarter of the year and is unlikely to brighten materially in the third quarter either, under ING’s scenario envisaging 0.5% economic contraction this year. Consumer and business confidence remain far from a full recovery, inflation is still elevated, and the fiscal impulse remains restrictive, the bank’s analysts argue.
Looking further ahead, growth should gradually recover as we move into 2027 and over the medium term. A key driver is the productive potential, supported mainly by the ongoing investment cycle, with infrastructure development taking centre stage. Although the RRF ends in August 2026, several projects should continue, especially in capital-intensive sectors such as health and transport, where financing is expected to shift towards Cohesion funds. In addition, under the SAFE framework, Romania is set to access a sizeable allocation of around EUR 16.7 billion, including pre-financing of roughly EUR 2.5 billion, subject to formal procedures.
This should also support FDI appetite, alongside a gradual recovery in private consumption as inflation cools. Taken together, these factors should provide a firmer base for activity. We expect growth to recover to 2.3% in 2027, after this year’s projected 0.5% contraction.

Source ING

Romania’s power grid operator sees no risk as nuclear reactor remains online

Romania’s power grid operator Transelectrica announces that it is operating the National Power System (SEN) under some of the most difficult conditions in recent years, amid the severe drought affecting Romania and the entire region.
The company reports that although the system is under high operational stress, there is currently no risk of a major breakdown, and the electricity supply is maintained safely through operational measures and the use of all available resources.
In the meantime, the controlled sinking operation of the four barges in the Danube, intended to increase the water flow to the Cernavodă Nuclear Power Plant, has been postponed until the morning of August 6, announced the Secretary of State in the Ministry of Transport, Ionel Scrioșteanu.
The intervention is part of the measures adopted by the authorities to maintain the water supply to the nuclear power plant, in the context of the sharp decrease in the flow of the Danube.
Currently, the Cernavoda Nuclear Power Plant is operating only with Unit 2, after Unit 1 was shut down in a controlled manner due to low river levels. The plant's director, Romeo Urjan, stated that Unit 2 could operate for approximately 10-11 more days if dredging works and controlled sinking of barges produce the expected effect.

Source: Economedia Economedia

Bucharest Exchange-listed JT Grup Oil ponders building Danube terminal

JT Grup Oil (BVB: JTG), which will put its Black Sea petroleum products terminal into operation in October, obtained the construction permit for a new petroleum products terminal on the Danube in the port of Tișovița - Dubova, in the Orșova area, in Mehedinți county.
The company has just completed technological tests for the terminal with an investment value of RON 150 million (nearly EUR 30 million), the construction of which began even before the company's IPO in the summer of 2024.
The Danube project envisages the construction of a terminal equipped with 4 above-ground tanks for liquid fuels, together with the facilities and infrastructure necessary for its operation, representing a new strategic investment in the expansion of the Group's logistics network.
"By developing the terminal in Constanta and the one in the Orșova area, the company aims to create an integrated logistics platform, capable of efficiently serving the markets in Central and Eastern Europe, namely Romania, Hungary, Serbia, Austria and Ukraine, capitalising on both access to the Black Sea and the advantages of the Danube river corridor," the company says.

Source: Profit

Politics

Romania’s Social Democrats consider forming a government as early elections pressure rises

Official and informal discussions between President Nicușor Dan and the leaders of the main centrist parties PSD, PNL, USR and UDMR regarding the formation of a new executive will resume next week, according to sources familiar with the negotiations consulted by Economedia. The plan seems to be the same sketched at the end of April, when PSD expected Liberals to abandon their leader Ilie Bolojan, left without the prime ministership, and return as partners in a coalition with a rather low reformist profile.
While the Social Democrats have voiced vocally against the “austerity” policies of PM Ilie Bolojan, they have not disclosed their own budgetary strategies. Wage and pension increases, signalled by PSD, are expected next year irrespective of the next government’s colour. But it is the PSD's less public resistance to reforms among the state companies and public administration that remains the main risk posed by a PSD-dominated executive.

The calendar currently being discussed for the new government would allow the inauguration of the new executive in the first week of September, according to the sources – while the structure of the new ruling coalition remains unclear.
Separately, the Social Democrats (PSD) are working on building a parliamentary majority together with the Hungarian party UDMR and the representatives in Parliament of the national minorities, also backed by parliamentarians pulled out of the far-right parties and Liberal (PNL) parliamentarians favourable to cooperation with PSD.
Calculations made by the Social Democrats indicate a majority of approximately 240 votes, sufficient to invest the government even without the official support of PNL, USR or AUR, claim the cited sources. The logic behind such a strategy remains overthrowing Ilie Bolojan from the top of the LIberal Party and subordinating its decade-long partner. Gaining the support of the MPs pulled out from the far right would be a short-term compromise, and this controversial segment of the would-be coalition would receive only lower-level positions in the public administration.
According to the scenarios sketched by PSD, there are two alternatives for the position of prime minister.
The first option is a political prime minister, represented by the interim leader of the PSD, Sorin Grindeanu. The second is the appointment of an independent prime minister; one of the names being circulated is the interim Minister of Finance, Alexandru Nazare, but sources say it could also be another person without political affiliation.
According to sources, PSD is willing to support the candidate who has the best chance of securing support from a parliamentary majority.
However, UDMR would prefer a government led by an independent prime minister, a formula in which liberal parliamentarians who would break away from the current PNL leadership could also participate.

Source Economedia

Romanian Parliament approves Decarbonisation Law amendment potentially blocking RRF funding

Romania’s Chamber of Deputies on August 5 approved the Decarbonisation Law for the second time, this time with the problematic amendments introduced in the Senate by the Social Democrats (PSD) that allegedly put at risk the implementation of the Resilience Plan because they reverse milestones met in the past by the country under the second disbursement request. The amendments expose Romania to penalties, and the blocking of payment requests 5 and 6 under the RRF, Minister of Investments and European Projects Dragos Pislaru claims, according to Bursa.
President Nicusor Dan previously announced he would carefully evaluate the Decarbonisation Law before promulgating it and promised to make use of all means, including the right to return t to lawmakers for further consideration, in case it puts at risk past commitments of the country.
The controversial amendments establish that no coal-fired electricity production capacity can be closed before new capacities become operational, which reportedly modifies milestones already assumed through the National Recovery and Resilience Plan. Under emergency ordinance OUG 108/2022, Romania sketched a calendar for closing down coal-fired power plants with a combined capacity of 4.9 GW by 2032, concomitant with building up two gas-fired plants with a combined capacity of 1.325 GW by 2026 and eight solar parks with a combined capacity of 735 MW to be commissioned in 2024. While the closing down of the coal power plants began in 2023, the planned investments are far from completion. The OUG 108/2022 already establishes that the coal-fired power plants will be closed after the new capacities are commissioned.

"With this amendment, you violate milestone 114, that is, the legislation for which Romania has already been paid through the second payment request. I have in front of me the technical documents received from the European Commission, which state very clearly that there is a risk of reversibility and confirm both the application of a penalty and the blocking of payment requests 5 and 6. I urge you to be responsible and ask you to reject this amendment," declared in Parliament Dragoş Pîslaru, the interim Minister of Investments and European Projects.
Warnings regarding the triggering of the reversibility mechanism and the application of financial corrections of over one billion euros were also sent by the leadership of the Executive and representatives of the Ministry of Energy.
"We are indeed facing an energy crisis and, obviously, the things that affect Romanians must be our first concern. We understand the political conflict during this period and we understand the prerogatives of Parliament to adopt judicious measures that will benefit Romanians. However, the amendments that have been proposed do not solve anything at all," argued Dragoş Pîslaru, Acting Minister of Investments and European Projects.

Source: Bursa B1TV

Romanian Parliament approves Integrity Law with controversial PSD and AUR amendments

Romania's Senate on August 5 approved the Integrity Law, a key milestone under the country's National Recovery and Resilience Plan (PNRR), sending the legislation to President Nicușor Dan for promulgation, according to Curs de Guvernare. The bill includes two controversial amendments backed by the Social Democratic Party (PSD) and the far-right Alliance for the Union of Romanians (AUR), which critics argue risk being struck down by the Constitutional Court.
The law was adopted by 104 votes to eight, with seven abstentions and two senators not voting. One AUR senator, six Save Romania Union (USR) senators and one unaffiliated senator voted against the bill.
According to Curs de Guvernare, the legislation could jeopardise a EUR 790 million grant under the European Union's Recovery and Resilience Facility if it is declared unconstitutional. The president may return the law to Parliament for reconsideration once before deciding whether to promulgate it.
One of the disputed amendments, promoted primarily by PSD, would bar from holding public office dignitaries who had previously been found to be in a conflict of interest. The provision is widely seen as targeting Timișoara Mayor Dominic Fritz, who also serves as president of the opposition USR.
A second amendment, proposed by AUR, extends asset declaration requirements to spouses and "spouse-like partners" of public officials. Legal experts, including former Constitutional Court judges cited by Curs de Guvernare, have criticised the wording as too vague to meet constitutional standards. President Dan's partner, Mirabela Grădinaru, published her declarations of assets and interests on August 5.
On August 3, USR accused PSD and AUR of negotiating amendments designed to target political opponents.
"At the behest of Sorin Grindeanu, PSD and AUR insist on creating retroactive punishments to eliminate their opponents from office, even if this means democratic vandalism and pushing Romania towards illiberalism," USR said in a statement.
The party warned that Romania could lose "almost EUR 800 million" in European funding if the legislation is ultimately found to breach constitutional principles.

Source: CusDeGuvernare

Romanian lawmakers seek compromise on Biodiversity Law linked to EUR 1 bln RRF milestone

Romania's Senate is set to resume debate on the Biodiversity Law on August 6 as lawmakers seek a compromise on one of the key milestones under the country's National Recovery and Resilience Plan (PNRR), with approximately EUR 1 billion in European Union funding linked to its adoption.
The legislation has become the subject of a dispute between the Ministry of Environment and the Social Democratic Party (PSD), with disagreements focusing on amendments affecting energy and infrastructure projects.
Senate Speaker Mircea Abrudean of the Liberal Party (PNL) said the bill must undergo a new parliamentary procedure because the version previously approved by the Senate had been "modified too much". The Chamber of Deputies' Environment Committee has meanwhile issued a negative opinion on the revised draft.
Environment Minister Diana Buzoianu said more than 100 amendments had been submitted shortly before committee discussions.
"We had over a hundred amendments that were submitted by AUR, by PSD the day before this project was debated in committees or, in the case of PSD, two hours before it was debated. Some of these amendments even violate objectives that Romania has assumed at the European level," she said.
PSD has argued that the legislation should include stronger safeguards for strategic investments.
Former Energy Minister Bogdan Ivan said the party would "not vote blindly" on the Biodiversity Law and called for several changes before its adoption.
"I am not asking for the rejection of the strategy. I am asking for three things and I am asking for them publicly: an economic impact study before the vote, not after; an explicit exception in the text of the law for strategic energy and infrastructure projects already approved; and the Ministry of Energy and the network operators at the table, with the right to decide, not just to consult," Ivan said.
The Biodiversity Law is among the reforms required for Romania to secure further disbursements under the European Union's Recovery and Resilience Facility, making its adoption before the end-of-August deadline a priority for the authorities.

Source: G4Media

Social

More than one in four Romanian localities risk losing funding over failure to join state e-payments platform

More than one in four local authorities in Romania risk losing access to parts of their public funding after failing to enrol in Ghiseul.ro, the government's online platform for the payment of local taxes and fees, interim Deputy Prime Minister Oana Gheorghiu announced.
Under the law, all municipalities and local administrations must be connected to the platform by August 25. According to Gheorghiu, 919 of Romania's 3,187 administrative units have yet to comply with the requirement.
"Over 2.5 million Romanians cannot benefit from the advantages of digitalisation today and are forced to physically go to city hall," Gheorghiu said, arguing that universal participation in Ghiseul.ro is essential to ensure citizens can access public services online regardless of where they live.
The deputy prime minister said she had sent reminder letters to the 919 mayors concerned, warning them that they have 20 days to complete the enrolment process.
"In case of non-compliance with the deadline, the law provides for the cessation of funding of local budgets, both with quotas deducted from income tax and with amounts deducted from certain state budget revenues intended to balance local budgets, with a few exceptions," she said.
The measure could affect transfers from the state budget that are used to finance local government operations, although statutory exceptions remain in place.
Gheorghiu added that the situation highlights the need for broader administrative reform.
"Romania urgently needs administrative reform and a reduction in the number of mayors," she said.
The Ghiseul.ro platform is Romania's official online payment portal for public services, allowing citizens to pay local taxes, fines and other public charges electronically. In 2023, the Ministry of Research, Innovation and Digitalisation and the Authority for the Digitalisation of Romania also launched a mobile application for the platform, through which more than 400 types of payments can be made.

Source Profit

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